Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Tenchusatsu who wrote (351032)	9/18/2007 9:55:38 PM
From: bentway	Respond to of 1575093

Obama Proposes $80 Billion Tax Cut for Middle Class (Update1) By Matthew Benjamin and Max Berley Sept. 18 (Bloomberg) -- Democratic presidential candidate Barack Obama proposed cutting taxes by more than $80 billion annually for middle-class Americans, a plan that would be funded by increasing the burden on investors and companies. The plan, which Obama announced in Washington today, would give a tax credit of up to $500 to 150 million working Americans, create a mortgage credit for homeowners, and eliminate taxes for some senior citizens. The proposal calls for raising the top rate on capital gains and dividends, eliminating ``corporate loopholes,'' including one used by hedge funds and private-equity firms, and cracking down on overseas tax havens. Obama, 46, is the first Democratic candidate to propose a comprehensive strategy for overhauling the tax code. In the speech to the Tax Policy Center today, he portrayed the current system as overly complex and skewed toward helping the wealthy at the expense of the middle class. ``At a time when Americans are working harder than ever, we are taxing income from work at nearly twice the level that we're taxing gains for investors,'' said Obama, an Illinois senator. ``I'll restore simplicity to the tax code, and fairness for the American middle class.'' Obama would give a tax credit of up to $500 to individuals or $1,000 per family to offset some payroll taxes. The credit would phase out at incomes between $150,000 and $200,000, making wealthy Americans ineligible. He would extend the mortgage interest deduction to all homeowners, not just those who itemize their taxes. Americans who take the standard deduction would get a credit averaging about $500 per year. Senior Citizens Obama's plan would eliminate taxes on senior citizens who earn less than $50,000 annually and remove the need for them to file tax returns. Campaign advisers estimated the new rule would apply to about 22 million senior citizens, and give about 7 million of them a tax cut of $1,400 on average. After the speech, Obama's senior economic adviser, Austan Goolsbee, said the $50,000 exemption for senior citizens would apply to households of two. The plan would also simplify tax filing for many Americans by having the Internal Revenue Service provide pre-filled tax forms using financial data it receives from employers and banks. The service would be available to filers without complex taxes, or those with only wage and bank-interest income. ``This means no more worry. No more wasted time. No more extra expenses for a tax preparer,'' Obama said. The tax cuts would be funded in part by raising tax rates on dividends and capital gains. Now 15 percent, that rate would rise to as high as 28 percent, the rate under former President Ronald Reagan. `Turn the Page' ``We'll also turn the page on an approach that gives repeated tax cuts to the wealthiest 1 percent of Americans even though they don't need them and didn't ask for them,'' Obama said. Obama would also crack down on international tax havens used by companies. The plan would create a list of countries where companies locate to evade U.S. taxes and use economic pressure to make them comply with international laws. ``It's time to shed some sunlight not only on companies that abuse the tax code, but also on the secretive offshore tax havens that shelter them,'' he said. Obama reiterated today that he supports ``closing the carried-interest loophole,'' a reference to legislation that would prevent hedge funds and private-equity firms from paying the lower capital-gains rate on their profits. His rivals for the Democratic nomination, former Senator John Edwards of North Carolina and Senator Hillary Clinton of New York also have endorsed the legislation. The plan would also eliminate ``special-interest loopholes and deductions, such as those for the oil and gas industry.'' Obama has also proposed repealing President George W. Bush's income tax breaks for households earning more than $250,000 a year to pay for a plan to offer health insurance to more Americans. To contact the reporters on this story: Max Berley in Washington at mberley@bloomberg.net ; Matthew Benjamin in Washington at mbenjamin2@bloomberg.net Last Updated: September 18, 2007 17:04 EDT